African Alliance Investment Bank is on course to ditch stock brokerage after revealing its intention to regulators and clients. The news comes amidst the sharp decline in transactions with the NSE 20 Share index at lowest levels since 2003.
According to the new move by the African Alliance, the company seeks to stop stock brokerage while continuing with regular businesses. This leaves the firm only running its investment banking and portfolio management, including its investment vehicles.
“The company regrets to inform our stock brokerage clients that as a result of structural decline in the agency trading model in both local and global financial markets, the company has decided to divest from and cease stockbroking activities,” reads the media notice.
Further, the Monday notice puts on alert clients to transfer accounts to new stockbrokers within the time.
“We further notify our stock brokerage clients to contact the company urgently to enable them (to) transfer their central depository system accounts(CDS account) to another stockbroker of their choice. This will also enable the company to refund cash balances(where applicable) in stockbroking accounts to respective stock brokerage clients. This exercise will take place between June 22 and July 22, 2020,” adds the company statement.